Ah hour?
We all know PayPal has requested SSNs for certain accounts for years now. I was doing 2k a day when I got my first SSN requirement. You just happen to meet the new guidelines (over 20k gross sales and 200 payments a year) and are now required to supply either a SSN/TIN/EIN.
Important info -->
Starting in 2011, all U.S. payment providers including PayPal will be required by the IRS to report sales information about certain merchants to the IRS. We want to help you understand these changes.
* Applies to merchants receiving over $20,000 in gross sales volume
AND 200 payments or more
*
Applies only for sales beginning on January 1, 2011
If you meet the stated thresholds, you will be required to verify your identity by adding a
SSN/TIN/EIN to your existing account. If you are currently using a Personal or Premier account, you will be
required to upgrade to a Business account.
IRS 6050W covers all transactions in the tax year 2011 and each tax year that follows. Beginning in 2012, qualifying merchants will receive a 1099-K Form either electronically or by mail. Transactions occurring prior to 2011 will not be affected by this legislation.
Starting in 2010, PayPal will be asking impacted merchants to update their account by adding their SSN/TIN/EIN to their existing account(s). This information will only be requested from
merchants that are potentially impacted by these requirements. If you are required to add this info, we will notify you via email and include an alert in your Account Overview.
Will I Be Affected by the 2011 Tax Changes if I Only Meet One of the Thresholds?
No. A merchant has to pass BOTH thresholds ($20,000 in gross sales volume and 200 transactions) in 2011 to qualify for the new requirements. A business receiving $10,000 in payments per year would
not be affected by the new requirements.
PayPal requiring EIN Contact Name 
